Treasury Announces New Opportunity Zone Regulations

Filed in Multifamily, Tax Reform Toolkit by on April 17, 2019 2 Comments

The U.S. Treasury Department today issued its second set of proposed regulations related to the new opportunity zones tax incentive.

Established as part of the Tax Cuts and Jobs Act of 2017, opportunity zones provide tax incentives for investors with capital gains to invest in and provide an economic boost to underserved communities. More than 8,700 zones, or approximately 11% of all Census tracts in the United States, have been identified for investment, and the federal government is now working to coordinate other federal initiatives with the opportunity zone program.

To maximize the tax benefits, investors must keep their capital invested for periods of five, seven or 10 years.

NAHB will provide a breakdown of these new regulations in the near future. For more information on opportunity zones, contact JP Delmore at 800-368-5242 x8412 or visit NAHB’s Opportunity Zones resource page (nahb.org/oz). Included are a copy of the public comments NAHB submitted to the IRS in December for further clarification on terms and statutes.

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  1. David Ritchie says:

    Need analysis on ways to participate both with land owned in OZ,s and in Equity in kind contributions of land in OZs

  2. Leipers says:

    For most people a 1031 will probably give better tax benefit. For example, NEW MONEY MADE from these benefits is still taxed. Qualifying investments must meet specific requirements. The legislation requires the project must be in an IRS-designated qualified opportunity zone; a tangible property used in a trade or business; and acquired through a cash purchased on or after January 1, 2018. And they have to be new construction OR substantially improved… this requires that the costs of constructing, renovating, or expanding the property during any 30-month period beginning after the date of the acquisition of the property must exceed 100% of the adjusted basis of the property at the start of the 30-month period.

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